4 Reasons to Do an Annual Mortgage Checkup
You get an annual physical. You see the dentist once or twice a year. You sit down with your accountant yearly, too.
Shouldn’t you check in on your mortgage just as often?
Your mortgage might clock in at hundreds of thousands of dollars, and it makes up a large chunk of your household wealth. Sure it may have worked for you when you bought your home, but things change. Market conditions fluctuate, your income and finances shift, and your household goals evolve. With all this, your mortgage may need change, too.
So, ask yourself: Is your mortgage still working for you? Here’s why you might want to check in on it:
- You could be eligible for a lower interest rate. Mortgage rates change often, and it’s important to evaluate how your rate measures up at least on an annual basis. Refinancing to a new rate even 0.25% lower could possibly save you thousands of dollars in the long run.
- It may free up extra cash. Making simple adjustments can sometimes save you big, both monthly and over the course of your mortgage. Could refinancing to a longer-term loan or lower rate reduce your monthly payment? What would putting that tax refund toward your balance do? It’s certainly worth looking into.
- It could help you better manage your debts. There are ways you can use your mortgage to pay off higher-interest debts, consolidate them all into one, easy-to-make monthly payment, and ultimately have the opportunity to save money in the long term. If you’re dealing with a number of debts with ever-growing interest payments, a mortgage checkup can give you some viable money-saving options.
- You may be able to cash in on your home for college tuition, medical bills, or other expenses you’re dealing with. Your home may have serious value, and there are several ways your mortgage might be able to help you tap into it. Could you refinance and get enough cash to pay for the first big tuition bill? That annual family vacay? Those much-needed home or car repairs? Know your options.
Your finances and plans change over time, and with that, your mortgage may need change as well. Make sure you evaluate your mortgage loan at least annually to ensure you’ve got the absolute best loan for your family’s finances and long-term goals.
Are you ready to start your yearly mortgage checkup? Then get in touch with an Embrace Home Loans team member today. We’ll walk you through the entire process.